The Best CD Rates in New York for 2025

New York's financial sector features countless banking options spread across its urban centers and rural communities. For Empire State residents, this wealth of choices can be a hurdle in the search for the top certificate of deposit (CD) rates. That's why our team has evaluated the state's consumer CD market to recommend the best CD rates available to New Yorkers.

The Best CD Rates in New York

Valley National Bank

Valley National Bank offers exceptional CD rates on all their available maturity terms ranging from 3 months to 4 years. Promotional CD rates are also available occasionally. The minimum opening deposit for Valley National Bank CDs is $500 (varies for promotional CD rates).

Popular Bank

Popular Bank provides a wide range of CD maturity terms ranging from 4 months to 5 years with highly competitive CD rates across the board. Moreover, customers can earn an APY boost based on the amount deposited–rate tiers start at $25,000. The minimum opening deposit for Popular Bank CDs is $1,000.

Apple Bank

Apple Bank offers strong CD rates for its entire range of maturity terms starting at 7 months to 5 years. Personal CDs can be opened online. The minimum opening deposit for Apple Bank CDs is $1,000.

Lock In The Highest CD Rates Before Interest Rates Crash Again

The Federal Reserve plans to continue dropping interest rates. To ensure that you continue to generate reliable returns for years to come, consider a CD now to lock in the highest available rates:

Methodology

To choose the best CD rates in New York, the MyBankTracker team reviewed the certificate of deposit accounts offered by the top 50 banks by deposit market share in New York (based on FDIC June 2024 data) with more than 10 retail branches in the state--for coverage and availability in major cities including New York City, Buffalo, Rochester, Yonkers, Syracuse, and Albany.

The top recommendations are the results of analyzing the CDs based on the following criteria:

• Annual percentage yield (APY) for each CD’s corresponding maturity term
• The number of CD maturity terms available from the bank with which their corresponding APYs are competitive
• Minimum opening deposit requirements

How Do CDs Work?

When you invest in a CD, you're agreeing to deposit a specific amount of money for a set period, ranging from a few months to several years. In exchange, the bank or credit union offers a fixed interest rate that remains constant throughout the term. This guarantees a predictable return on your investment. 

However, accessing these funds before the term ends can lead to early withdrawal penalties, which may reduce your earned interest or even part of your principal.

How to Pick a Certificate of Deposit

Selecting the right CD involves considering several factors:

• Interest rate: Higher rates increase your earnings. Compare rates from different institutions to find the most competitive option.
• Maturity term: Short-term CDs (e.g., 6 months) offer quicker access to funds but typically have lower rates. Long-term CDs (e.g., 5 years) usually provide higher rates but require a longer commitment.
• Minimum opening deposit: Some CDs require a minimum deposit, which can vary between institutions. Ensure the required amount aligns with your investment capability.
• Early withdrawal penalty: Understand the penalties for early withdrawal, as they can impact your overall returns if you need access to your funds before maturity.
• Flexibility options: Certain CDs offer features like "bump-up" options, allowing you to increase your rate if market rates rise, or the ability to make additional deposits during the term.

Compared to Online CDs Available Nationwide

Online banks have become a popular choice for CD investments due to several advantages:

• Higher interest rates: Without the overhead costs of physical branches, online banks often provide more competitive rates.
• Lower minimum deposits: Some online CDs have minimal or no minimum deposit requirements, making them accessible to a broader range of investors.

When researching CDs, it's beneficial to include online banks in your comparison to maximize potential returns and find terms that suit your financial goals.

FDIC Insurance

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member banks up to $250,000 per depositor, per insured bank, for each account ownership category. This insurance covers CDs, ensuring that your investment is protected even if the bank fails. Most banks, including online institutions, are FDIC-insured, providing a safety net for your deposits.

FAQs

What happens when a CD reaches maturity? Does it renew?

Upon maturity, you have the option to withdraw the principal and interest, reinvest in a new CD, or let it roll over into a similar CD with the same term. If you don't provide instructions, many banks automatically renew the CD for the same term at the current interest rate. It's essential to be aware of the maturity date to make informed decisions about your investment.

What is a CD ladder?

A CD ladder is a strategy where you divide your investment into multiple CDs with staggered maturity dates. This approach provides regular access to portions of your funds and reduces the risk of being locked into a single interest rate. For example, instead of investing $15,000 in a single 5-year CD, you could invest $5,000 each in 1-year, 3-year, and 5-year CDs. As each CD matures, you can reinvest in a new 5-year CD, maintaining the ladder and potentially benefiting from rising interest rates.

How is interest accrued in a CD?

Interest on a CD is typically compounded daily, monthly, or annually, depending on the institution's policies. Compounding means that the interest you earn is added to your principal, and future interest calculations are based on this new total. The more frequently interest is compounded, the more you earn over time.

How are interest earnings in CDs taxed?

Interest earned from CDs is considered taxable income by the Internal Revenue Service (IRS). Even if you don't withdraw the interest, you're required to report it on your federal income tax return for the year it was earned. Some states also tax interest income, so it's advisable to consult with a tax professional or refer to state tax guidelines to understand your obligations fully.